The people spoke to The Associated Press on condition of anonymity because the team's announcement Wednesday did not reveal financial terms.

Wall was the No. 1 overall pick in the 2010 NBA draft after playing one season of college basketball at Kentucky, immediately becoming the prime building block for a Wizards club that now has missed the playoffs each of the past five seasons.

He has averaged 16.9 points, eight assists, 4.4 rebounds and 1.5 steals in 35.8 minutes during his career, starting 172 of 184 games.

In the Wizards' release announcing the extension, Wall says he will do "everything I can to get this team back where it belongs."

The team will hold a news conference Thursday.

Last season, the 22-year-old Wall averaged a career-high 18.5 points, along with 7.6 assists, four rebounds and 1.3 steals in 32.7 minutes. He appeared in only 42 games because of a stress injury in his left knee cap, and Washington started the season 4-28 without him.

After the 6-foot-4 Wall returned in January, though, the Wizards were able to play close to .500 ball and finished 29-53. He really began to hit his stride late in the season, even showing some signs of developing into an outside shooter.

If Wall hadn't been able to reach an agreement with the Wizards this offseason, he would have become an unrestricted free agent in 2014. But team owner Ted Leonsis made it clear that he wanted to keep Wall on the roster.

With Wall, and a pair of players chosen with the No. 3 overall picks in the past two drafts - shooting guard Bradley Beal and small forward Otto Porter - the Wizards are hoping they will be able to be more competitive next season.